Microsoft-Yahoo Search Deal Won't Survive?

A New York antitrust attorney says he doubts Microsoft and Yahoo's new partnership will "pass muster" with the regulators, according to Computerworld. Constantine Cannon partner Matthew Cantor says even though the two companies argue that they need to pair up in order to effectively compete against Google in the search space, the Department of Justice will see the partnership as narrowing the competitive field.

Cantor explains:

Microsoft will say they need this merger to defend against this giant, Google. That's not a credible argument... They've spent years and tremendous resources creating Bing, which has gotten great reviews. They weren't pouring all these millions of dollars into Bing because they think they can't compete.

On the other hand, Microsoft outside counsel Jonathan Kanter, who is a partner in the Washington, D.C. offices of Cadwalader, Wickersham and Taft, says Microsoft and Yahoo can do more to combat Google together than they can separately.

At the very least, Cantor says, the DOJ will make Microsoft and Yahoo modify their existing deal.